1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bixtya [17]
3 years ago
11

Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865.

The bonds will mature in 11 years. What is the yield to maturity on the bonds?
Business
1 answer:
Andre45 [30]3 years ago
6 0

The yield to maturity on the bonds is 10.0868%

<u>Explanation</u>:

Given,

Annual coupon rate = 8% = 0.08

Par value = $ 1000

Price = $ 865

                               N = 11 \times 1 .

                            PV = $ 865

                         PMT = ( Par Value \times The coupon rate) / F

                                 = ( 1000 \times 0.08 ) / 1

                                 = 80.

                           FV = 1000.

Financial calculator solution

the yield to maturity = I = 0.1008668

                                      = 10.0868% .

You might be interested in
How do businesses determine the equilibrium price of a good or service?
Helen [10]

Answer:

C. They set a price where the demand matches the quantity they are

willing to supply

Explanation:

The equilibrium price is the current market price as determined by supply and demand forces. It is the price at which buyers are happy to buy the entire supplied quantities. Suppliers are also happy to sell that quantity at the set price. The equilibrium price is, therefore, the intersection of the demand and supply curves.

At the equilibrium price, there is no excess or short supply of a product in the market.

6 0
3 years ago
HELPPP How would entrepreneur apply comfort with risk when developing a product or service ?
andre [41]
Test the product before it launches
7 0
3 years ago
Read 2 more answers
How does assertiveness compare to both acquiescence and aggression?
olchik [2.2K]

Answer: It is more aggression than acquiescence. It is not a compromise between the two.

Explanation:

4 0
2 years ago
When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods co
NNADVOKAT [17]

Answer:

Option "C" is the correct answer to the following statement.

Explanation:

While deciding where to sell, export and import laws are not insuperable for managers to rely on a country that is a large consumer of goods imported from native countries.

  • Many products sold to a foreign investor need no export license. Both products are however subject to the laws and legislation on export control.
  • The easiest way to find if an item needs an export license is to verify which authority has control over the commodity you are attempting to sell, or controls it.
7 0
2 years ago
The distinction between a current asset and other assets: A. is based on the ability to determine the current fair value of the
Scorpion4ik [409]

Answer: is based on when the asset is expected to be converted to cash, or used to benefit the entity.

Explanation:

Also known as a Short-Term asset, a current asset is an item of value that a company can either use or sale within a period to gain cash to clear current liabilities. Current assets can easily be converted to cash by sales or use.

3 0
3 years ago
Other questions:
  • Which of the following is a “DO” regarding scannable résumés?
    6·2 answers
  • Brea is looking for an insurance policy for her car. Her friend, Justin, who is an attorney, just told her that the policy is a
    13·1 answer
  • Trendsetters has a cost of equity of 14.6 percent. The market risk premium is 8.4 percent and the risk-free rate is 3.9 percent.
    12·1 answer
  • Some employees at a local business heard that the business was going to increase its use of information systems. Which of the fo
    13·2 answers
  • Suppose a life insurance company sells a ​$290 comma 000 ​one-year term life insurance policy to a 20​-year-old female for ​$280
    12·1 answer
  • What disadvantage a They would be ineligible to receive b. They would receive only a partal benefit for as long as they collect
    7·1 answer
  • Corporation made sales of million during . Of this​ amount, collected cash for million. The​ company's cost of goods sold was ​m
    7·1 answer
  • The ______ inventory system records all inventory-related transactions in the inventory account (e.g. transportation, purchase r
    11·1 answer
  • According to the video, what are some common issues treated by Marriage and Family Therapists? Check all that apply.
    6·2 answers
  • Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hand
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!